New Thermal Power Plant Investment in Denizli

Dear Energy Professional, Dear Colleagues,

Your writer is happy to learn the announcement of new thermal power plant investment in Denizli District near KAKLIK village.

German E.ON together with a local reputable Turkish local partner are planning to install a new thermal power plant to generate 800 MWe electricity.

Prior to their EIA application, they will be organising "Public Information Meeting" on 17th June 2008. Details are in their web site. www.eonturcasdenizlienerjisantrali.com

Your writer feels happy to get such news on new energy investments in our local energy market, provided that they are environmentally friendly, they have completed all obligations for Environmental Impact Assessment Reports, they receive their license from the Local Regulatory Board, design by local engineering companies as much as possible, fabricate in the local fabrication plants as much as possible, install by our local contractors, commissioned and supervised by our local engineering power, operated by our own staff, and regularly checked by our own Labor force in programmed maintenance.

Your writer sincerely feels that energy investors deserve all our support to complete those power plant investments. They deserve since they risk their own property in order to get proper "Corporate Financing" at reasonable interest rates, and payment terms.

Hence your writer also tries to avoid them to make any technical mistakes in their power plant design, furthermore to avoid incorrect selection of the necessary equipment, wishes them to operate the plant for many years, to generate electricity which will push our economic prosperity.

After reading the Project Information Brochures, we feel that they are prepared quite good. There are not much project details, only already known details are disclosed. We learn that the output capacity is 800 MWe. They will install air cooled cooling system. That means they will not use much underground water. That is good for nearby ongoing agricultural activities. As a matter of fact, water is scarce at the neighbouring site.

We do not know details of selected gas turbine, steam turbine, HRSG, cooling system, heat balance diagrams, fabrication, construction, site installation contractors, whether they are local or foreign, details of budget figures for each item, the timetable for project execution.

It is your writer's humble feeling that we should help and warn the investor not to repeat negative past examples in Antalya, Amasra, Yatagan, Afsin.

Foreign investor should be comfortable here that we are ready to help them. We should warn that they should not involve any corruption for speeding the public procedures, getting licenses, getting EIA approvals.

Local investor should feel comfortable that we shall be waring them in proper design, sourcing fabrication, site installation, logistics, public approvals.

We all expect that these energy investments will bring prosperity, employment and peace to the site. Maximised manpower, maximised engineering/ fabrication/ site installation capabilities will be employed.



Photo. Siemens SGT5-4000F CGG reference

After brief review of the project, we feel that we need answers to the following question,

- We need to learn the origins of the basic equipment, gas turbine, steam turbine, heat recovery steam generator, condenser, cooling tower. Since the foreign investor is from Germany, we may presume that the gas turbine will be of Siemens 2 each SGT5
-4000F. Similarly steam Turbine will also be purchased from Siemens. What are the budget figures? When are they going to be delivered to site? How are they transported from which sea port?

- Since there is space limitations, the heat recovery steam generator will be of vertical gas pass, forced circulation type with supplementary firing. Who will be designing (CMI- Belgium?), who will be the fabricator (Cimtas, Gulermak) , who will be the construction company for site installation?

- It is our understanding that they have not applied yet to EIA certification nor to the Local regulatory board for licensing. There should not be any deviation of the information they will be declaring in the local information meeting and the information they will be furnishing to the public administrations.

- Since the selected site is 545 meters above sea level, they need to have supplementary firing in their heat recovery steam generators in order to reach 800 MWe electricity generation output. We would be too pleased to learn the details of their burners, burner management systems, emission controls.

- We shall be too pleased to learn where they will be purchasing the cooling towers, air cooling system design and equipment. As we all know similar size thermal power in Baymina Temelli project, they could not install air cooling systems since the towers would be in the airplane landing route to Murted airforce airport. Investors are to check if the plant air cooled cooling towers are free from airplane landing routes of Denizli Cardak International Airport as well as emergency landing site at nearby highway.

- We need to know who will be the site constructor, what is the budget figure? They should be local companies. Local labours will be at the site.

- We need to know the project period, the importance milestones, we expect that 28-30 months could be a reasonable period.

- We need to know who will be making and paying the new 380 kV transmission and new natural gas incoming pipeline to the site.

- We need to know when the major equipment land transportation will be made, do we have sufficient roads for that transportation, who will be making the road reinforcement to enable the transportation?

- Do they have long term natural gas purchase agreement with respective organisations, do they have long term electricity sale agreements?

- Do they consider any capacity extension in the long term in 10-20 years time? Do they have enough space/ land for that extension??

- It is known that Siemens SGT5-4000F gas turbine is also suitable for IGCC. Do investors consider any IGCC application in future by gasification nearby Aydin, Yatagan indigenous lignite mines to avoid any energy supply risk?

- Generally we observe that after plant construction and generation of income in 3-5 years, the foreign party decides to sell her shares to the local partner and leave the project/ country. That was the case in Enron in Trakya, selling all her shares to her local partner, Steag in Sugozu. How is the long term policy of the foreign party in this case?

- We will be too pleased to learn if the local party will be thinking to create local engineering department to carry out necessary basic engineering in the long term.

- Could we Chamber of mechanical Engineers, organise annual technical tours for our members and ME students to the site in future?



Photo. Enka Gebze Adapazari CCPP with air cooling Cooling towers

Your writer hopes all the best, and the success to the investors in their new venture